Vietnam’s economic momentum in the manufacturing and textile sectors has been bolstered by a robust surge in foreign direct investment (FDI), with $10.98 billion registered in Q1 2025 alone—marking a 34.7% year-over-year increase.
This impressive figure reflects the country’s continued attractiveness as a destination for global investors, particularly as companies seek alternatives to China for production. The Vietnamese government’s ongoing reforms, including streamlining investment procedures, enhancing infrastructure, and promoting digital transformation in manufacturing, have made it a hotspot for FDI.
In the textile and apparel industry, major players from Japan, South Korea, and Europe have either expanded their existing operations or established new facilities in northern provinces such as Bac Ninh, Hai Duong, and Thanh Hoa. These regions are known for offering favorable logistics access and government support.
Vietnam’s Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) membership, along with free trade agreements with the EU and UK, continues to boost its profile as a trade partner. Duty-free access to key markets is enabling Vietnamese exporters to scale production while ensuring competitive pricing.
Another contributing factor is Vietnam’s investment in human capital and green manufacturing practices. New training centers, digital manufacturing labs, and eco-industrial parks are emerging as key enablers of sustainable growth.
Industry experts believe that if Vietnam sustains this FDI growth, it could evolve from a low-cost manufacturing base to a hub for innovation and sustainable production. In the long term, this could position the country as one of Asia’s top three textile powerhouses, alongside China and India.
